What must an Itan franchisee comply with when marketing outside of their territory?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You can market and advertise outside of your territory and development territory, if applicable, as long as: (a) you comply with all policies and procedures in the Manual governing extra-territorial marketing; and (b) you do not engage in targeted marketing directed into any territory or development territory assigned to us, our affiliate or another franchisee (unless the marketing is conducted as part of an advertising cooperative that includes the affected territory). Marketing that is distributed, circulated or received both within your territory and within another territory is not considered "targeted marketing" if: (a) you use reasonable efforts to limit the circulation or distribution of the advertising to areas within your territory; and (b) the majority of the recipients of the advertising are located within your territory and there is only incidental circulation or distribution within a territory assigned to us, our affiliate or another franchisee. The meaning of "targeted marketing" that is "directed into a territory" may be further defined in the Manual, but examples include direct mail sent to addresses within a given territory, digital advertising sent to devices with IP addresses registered within a given territory and conducting promotional events within a given territory.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees can market and advertise outside their designated territory or development territory, provided they adhere to specific guidelines. Firstly, they must comply with all policies and procedures outlined in the Itan Manual governing extra-territorial marketing. This suggests that Itan has established specific rules and guidelines that franchisees must follow when engaging in marketing activities beyond their primary territory.
Secondly, franchisees must not engage in targeted marketing directed into any territory or development territory assigned to Itan, its affiliates, or other franchisees. However, there is an exception for marketing conducted as part of an advertising cooperative that includes the affected territory. This implies that collaborative marketing efforts are permitted, even if they extend into other territories, as long as they are part of a coordinated campaign.
Marketing that is distributed, circulated, or received both within the franchisee's territory and within another territory is not considered "targeted marketing" if certain conditions are met. The franchisee must use reasonable efforts to limit the circulation or distribution of the advertising to areas within their territory. Additionally, the majority of the recipients of the advertising must be located within the franchisee's territory, with only incidental circulation or distribution within a territory assigned to Itan, its affiliate, or another franchisee. The FDD specifies that the meaning of "targeted marketing" may be further defined in the Manual, with examples including direct mail, digital advertising, and promotional events within a given territory. Therefore, franchisees need to consult the manual for a comprehensive understanding of what constitutes targeted marketing.